Sunk cost in buildings
NRM3: Order of cost estimating and cost planning for building maintenance works, defines ‘sunk cost’ as:
‘… the cost of goods and services already incurred and/or irrevocably committed.’
As sunk costs have already happened, they are independent of any event that may occur in the future.
Sunk costs are often associated with buildings, as for many businesses, once built, they are in effect sunk costs.
Sunk costs can pose an important dilemma for the funders of building projects, if for example, circumstances change part way through a project. They may then need to weigh up how much they have already spent, against the potential consequences of either proceeding (and potentially throwing good money after bad) or cutting their losses and moving on.
[edit] Related articles on Designing Buildings Wiki
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
The Building Safety Regulator announces a call for evidence.
Government approach could undermine delivery and regeneration.
World's first mass timber data centre.
The overlooked environmental aspect of data centre development.
Introduction to radon awareness
New technical information sheet published by CIOB.
Updated supplier guide can help electrical contractors engage with NHP.
CIAT confirm the winners of the 2026 architectural technology awards.
Government launches a one stop shop for flood preparedness.
Sir Edwin Lutyens: Britain's greatest architect? Book review.
CIOB publishes free template to help assess and manage risks.
ECA's reflections on Party Conference season
Burnham wants to be confident of winning before asking for a fresh mandate.
New Chief Construction and Scientific Adviser
Sergio Cavalaro, Professor of Infrastructure Systems at Loughborough University.
Building safety levy for England
CIAT publish estimator tool for members.